golisano was on the tube today. following is the transcript from his brief appearance on CNBC. around earnings, he's a regular.
if you're a multimedia type, here's a link to the aud & vid too.
mktnews.nasdaq.com\\www\nasdaq\news\msnbc\1999\6\29\NASDAQ_1150_22573.htm&usymbol=PAYX&logo=True&companyname=Paychex%2C+Inc%2E
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CNBC -- MARKET WATCH
PAYCHEX (PAYX) CHAIRMAN AND CEO TOM GOLISANO ON THE COMPANY'S Q4 EARNINGS
JUNE 29, 1999
SUMMARY: Golisano explains the company's payroll processing service. Golisano comments on Paychex's human resources services.
Ted: The company known as Paychex reported record earnings for its fiscal year. Net income for the second-largest payroll processor rose 36% to just above $139 million, or 56 cents per share. Fiscal fourth-quarter profits were in line with street estimates at 15 cents per share. The chart looks like this: down 1 5/8 at 30 7/16. Paychex Chairman and CEO Tom Golisano joins us live from Rochester, New York to discuss the results and his company's future. Why are they selling your stock on this good news?
I can't answer that, I run the company, up to you and your viewers to determine the stock price, our earnings have grown by 37%, high interest level in the stock, prospects for the future are quite good.
Ted: Break down the numbers, if you will, you do more than process payrolls.
Our core services is a payroll process services, we have 322,000 clients, division does $550 million in revenue, we have a human resources services division for 401(k), record keeping, workers compensation insurance, that does about $50 million in revenue.
Ted: From what I gather, Uncle Sam is helping you a bit, even small businesses can't handle their payrolls.
The federal government and state governments have been aggressive in making the relationship between the employer and the employee more complicated and sophisticated all to the benefit of the employee, but if you think of the fact that ten years ago, we didn't 401(k) and record keeping and cobra, new higher reporting and all the things added, all very much for the benefit of the employee but makes the job of the employer more difficult.
Ted: Every time we introduce you, we say number two, who is the number one?
Automatic Data Processing. They've had a terrific record on Wall Street for a long period of time.
Ted: Ever think about talking to them about a deal?
We are good friends but no conversations like that.
Ted: Where do you stand on Y2K issues, that would be critical for you with the kind of record keeping you do.
Absolutely, we've been processing payrolls on Y2K compliant software for a year now, in good shape, more concerned about some of the organizations which we interface with and they are in the banking industry, I can't understand any bank would not be year 2000 compliant, so quite frankly, we're in good same shape externally and internally.
Ted: Last but not least in terms of the economy, I'm curious, if the Fed tightened here, would that effect your business at all?
Quite frankly, the initial reaction people might have is interest rates go up a little bit, it might effect the creation of new business, on the short run, Paychex has a significant amount of money we call infloater for tax payments and if the interest rates go up, it will effect us on a positive basis on the short-term level.
Ted: Thank you for being with us. Paychex Chairman and CEO Tom Golisano, live from Rochester, New York. |
